June 27, 2017 3:30 PM ET

Diversified Telecommunication Services

Company Overview of GCI, Inc.

Company Overview

GCI, Inc., through its subsidiaries, operates as a diversified communications provider primarily in the state of Alaska. It operates through two segments, Wireless and Wireline. The Wireless segment offers wholesale wireless services to wireless carriers. This segment also provides network transport and access to its wireless network to wireless carriers. The Wireline segment offers a range of retail wireless, data, video, and voice services to residential customers, businesses, governmental entities, and educational institutions; and wholesale data and voice services to common carrier customers. This segment also provides managed, wholesale data and voice, and data services to rural schools...

2550 Denali Street

Suite 1000

Anchorage, AK 99503

United States

Founded in 1997

2,310 Employees

Phone:

907-868-5600

Key Executives for GCI, Inc.

Chief Executive Officer, President and Director
Age: 58
Chief Financial Officer, Treasurer, Secretary and Director
Age: 43
Senior Vice President of Governmental Affairs and General Counsel
Age: 47
Chief Accounting Officer and Vice President
Age: 51
Senior Vice President of Strategic Initiatives
Age: 58
Compensation as of Fiscal Year 2016.

GCI, Inc. Key Developments

GCI, Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2017; Provides Earnings Guidance for the Year 2017

GCI, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, the company reported revenues of $228,115,000, operating income of $15,346,000, loss before income taxes of $8,650,000, and net loss attributable to the company of $55,129,000, compared to revenues of $231,098,000, operating income of $20,019,000, income before income taxes of $4,049,000, and net income attributable to the company of $1,099,000, for the same period a year ago. Adjusted EBITDA was $68,809,000 against $70,606,000 a year ago. Basic and diluted net loss attributable to company common stockholders per Class A common share was $1.60 against diluted net income attributable to company common stockholders per Class A common share of $0.04 a year ago. Basic and diluted net loss attributable to company common stockholders per Class B common share was $1.60 against diluted net income attributable to company common stockholders per Class B common share of $0.04 a year ago. Capital expenditures for the quarter totaled $28 million. The company's first quarter revenues were a decline of $4 million sequentially and $3 million from the first quarter of 2016 (down approximately 1% year-over-year) driven by weakness in consumer wireless and video. Pro Forma EBITDA was $73,017,000 against $70,606,000 a year ago. Pro Forma EBITDA is up due to savings achieved in procurement initiatives and the company’s circuit costs. The net income for the quarter was negatively affected by a significantly higher income tax expense for the quarter. Pro Forma EBITDA is expected to be between $300 million and $325 million in 2017, excluding costs related to the Liberty transaction. Capital expenditures are expected to be approximately $165 million in 2017.

GCI, Inc. Completes the Previously Announced Solicitation of Consents from the Holders of its Outstanding 6.75% Senior Notes Due 2021 (6.75% Senior Notes) and 6.875% Senior Notes Due 2025

On April 26, 2017, GCI, Inc. has completed the previously announced solicitation of consents (the Consent Solicitation) from the holders of its outstanding 6.75% Senior Notes due 2021 (6.75% Senior Notes) and 6.875% Senior Notes due 2025 (6.875% Senior Notes and together with the 6.75% Senior Notes, the Notes) to effect certain amendments to the indentures governing the Notes (the Indentures) and the related Letter of Consent. The primary purpose of the Consent Solicitation is to amend the Indentures to do the following: permit the Issuer to be a Delaware limited liability company rather than a corporation as currently required under the Indentures, which would be effected through the merger of the Issuer with and into a new wholly owned limited liability company subsidiary of GCI, result in the Reorganization Transactions not constituting a “Change of Control” requiring the Issuer to make an offer to repurchase the Notes at 101% of principal amount plus accrued and unpaid interest, and provide less restrictive covenants than those set out in the Indentures with respect to certain actions the Issuer and certain of its subsidiaries holding the Liberty Ventures businesses, assets and liabilities contributed by Liberty Interactive to GCI as part of the Reorganization Transactions. The existing covenants in the Indentures would continue to apply to all of the Issuer’s subsidiaries that are currently designated as Restricted Subsidiaries. As of the expiration date of the Consent Solicitation at 5:00 p.m., New York City time, on April 24, 2017 (the Expiration Date), the Issuer received consents from holders of: $312,418,000 in aggregate principal amount of the 6.75% Senior Notes, representing 96.13% of the total principal amount outstanding of the 6.75% Senior Notes, and $443,538,000 in aggregate principal amount of the 6.875% Senior Notes, representing 98.56% of the total principal amount outstanding of the 6.875% Senior Notes. The consent of holders of at least a majority in aggregate principal amount of a series of Notes then outstanding was required to approve the Proposed Amendment with respect to that series of Notes. On April 26, 2017, the Issuer paid to the tabulation agent for the benefit of registered holders of Notes (Noteholders) as of the record date for the Consent Solicitation that validly delivered (and did not validly revoke) a properly completed letter of consent (a Consent) on or prior to the Expiration Date with respect to the Proposed Amendment relating to the 6.75% Senior Notes, an aggregate consent fee of $812,500 payable to the holders of 6.75% Senior Notes, on a pro rata basis, who validly delivered (and did not validly revoke) a properly completed Consent and with respect to the Proposed Amendment relating to the 6.875% Senior Notes, an aggregate consent fee of $1,125,000 payable to the holders of 6.875% Senior Notes, on a pro rata basis, who validly delivered (and did not validly revoke) a properly completed Consent.

GCI, Inc. Launches Consent Solicitation Related to Senior Notes

General Communication, Inc. (GCI) announced that its wholly owned subsidiary, GCI, Inc. is soliciting consents (the Consent Solicitation) from the holders of its outstanding 6.75% Senior Notes due 2021 (6.75% Senior Notes) and 6.875% Senior Notes due 2025 (6.875% Senior Notes and together with the 6.75% Senior Notes, the Notes) to effect certain amendments to the indentures governing the Notes (the Indentures), as described upon the terms and subject to the conditions set in the Consent Solicitation Statement, dated April 12, 2017 (the "Statement"), and the related Letter of Consent. The primary purpose of the Consent Solicitation is to amend the Indentures to do the following (the Proposed Amendments): permit the Issuer to be a Delaware limited liability company rather than a corporation as currently required under the Indentures, which would be effected through the merger of the Issuer with and into a new wholly owned limited liability company subsidiary of GCI, result in the reorganization transactions not constituting a "Change of Control" requiring the Issuer to make an offer to repurchase the Notes at 101% of principal amount plus accrued and unpaid interest, and provide less restrictive covenants than those set in the Indentures with respect to certain actions the Issuer and certain of its subsidiaries holding the Liberty Ventures businesses, assets and liabilities contributed by Liberty Interactive to GCI as part of the reorganization transactions. The existing covenants in the Indentures would continue to apply to all of the Issuer's subsidiaries that are currently designated as Restricted Subsidiaries.

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